As a critical function in banks, loan servicing involves managing and maintaining loans after the officer approves the loan and the customer gets the loan amount. In the banks that have good loan servicing process, they do the following functions really well.

  • Payment Collection
  • Balance tracking
  • Escrow accounts management
  • Ensuring compliance with regulations

Here are 5 ways ServiceNow’s AI can improve loan servicing for customers.

Personalized Customer Service

ServiceNow’s AI enhances customer service management for borrowers exponentially. With AI, loan servicing officers can easily access customer data such as payment history, credit scores, and past histories and service loans accordingly. The process is highly simplified for the loan officers and the borrowers. The loan processing officer can save a lot of time and move on to the next case, and the borrower can get their much needed loan on time. ServiceNow’s AI can provide tailored recommendations that are remembered by the platform and it can help expedite the process in the future. This helps in the improvement of customer satisfaction and retention.

Predictive Maintenance

In fairly large banks, credit unions, and independent lenders, loan servicing issues are bound to arise and when they do, it costs them a huge amount of money and resources. This is why ServiceNow has leveraged AI to identify potential problems such as missed payments and default risk. While automating insurance claims workflows, even insurers can leverage ServiceNow’s predictive intelligence to neutralize problems that linger in the horizon. 

ServiceNow’s AI automatically alerts loan servicing teams so that they can take informed decisions for the benefit of both the company and the customer. This prediction of loan servicing issues before they occur has helped organizations from making costly mistakes and customers from embarrassments. This method of taking proactive steps to prevent issues and ensure smooth loan servicing has highly benefitted organizations.

loan servicing

Streamlined Payment Processing

Automated payment processes reduce the need for manual intervention and enables human resources to focus on tasks that require high emotional intelligence. ServiceNow’s AI can analyze payment data and identify payment patterns and predict customer behavior to help organizations process payments faster and more accurately. This reduces errors and improves customer service.

Efficient Escrow Management

Organizations that manage escrow accounts with ServiceNow’s AI can do so efficiently by automating routine tasks such as payments tracking, reports generation, records updating. Leveraging predictive analytics, escrow management teams can identify potential risks and issues that may arise. Natural language processing (NLP) can help them to understand the language used in escrow management and contracts. ServiceNow’s AI can bring intelligent workflow management to the table to automatically assign tasks and detect urgency and importance to assign priorities. Finally, with the help of machine learning, they can analyze historical data to identify trends and patterns.

Fraud Detection

Fraudulent activity related to loan servicing can be detected by ServiceNow’s AI efficiently. Data collected on payment behavior, loan history etc. will be picked up by ServiceNow and analyzed for suspicious behavior constantly. Reports can be generated on potential fraud and loan servicing officers can be alerted immediately. This will help organizations protect their interests as well as protect customers.

Conclusion

ServiceNow’s AI can enable organizations to service loans for their customers faster and safely by providing personalized customer service, predicting loan servicing issues, streamlining payment processing, managing escrow accounts efficiently, and detecting fraud. ServiceNow’s AI can enhance loan servicing capabilities and improve customer experience thereby ensuring their loyalty. The ServiceNow platform enables organizations to automate workflows, optimize licenses, integrate ServiceNow with 3rd party apps build customized apps with its App Engine. Fueled by AI, these features will help you become a leader in your industry. 

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